Bitcoin Tops $64K; Short Sellers Lose $57.4M
Bitcoin reclaimed $64,000 and briefly hit $64,375 as a rally liquidated about $57.4 million in short positions and nearly $220 million across crypto.
On Monday, bitcoin recovered from an intraday low of $62,653 to breach $64,000, briefly reaching $64,375. The price climbed about $1,000 over six hours after reversing course a few hours before midnight, and by 1:30 p.m. EST it traded above $64,200, up close to 2% for the day and lifting its market capitalization above $1.29 trillion. The weekly return moved from negative territory to roughly +0.5%.
Derivatives trackers showed forced liquidations tied to the price spike. Over the previous 24 hours roughly $57.4 million in leveraged short positions were liquidated, compared with about $13.3 million in long liquidations. Across the broader cryptocurrency market, total liquidations approached $220 million, with short positions accounting for about $155 million of that amount.
Strategy disclosed that it did not buy or sell bitcoin during the past week. The company raised $333.7 million through a common stock sale and used part of the proceeds to increase cash reserves to $4.8 billion, repurchase 1,388,720 STRC shares for $132.2 million, and pay $52.4 million in preferred stock dividends. Strategy announced it will pause further bitcoin purchases until STRC preferred shares trade back at par value and specified liquidity thresholds are met.
Some analysts contend the larger cash reserve reduces near-term liquidation pressure tied to preferred dividends or debt service. With bitcoin trading about 15% below Strategy’s average acquisition cost of $75,385 per coin, some market participants view the company’s actions as an effort to protect its balance sheet and limit potential equity dilution. Other investors criticized the allocation of proceeds, saying it shifts value toward STRC preferred holders and that suspending bitcoin purchases removes the company’s primary source of direct bitcoin exposure.
Markets also reacted to reports that the United States and Iran had agreed to extend a Pakistan-mediated 60-day ceasefire that was expected to end on Monday. Prices moved higher on the reports, but Iranian officials later denied an extension had been agreed and no formal confirmation was available at the time of writing.
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